New Miami Beach Laws Cracking Down on Short-Term Rentals
BY BRAD BECKETT ON OCTOBER 21, 2018
As an avid reader of this site, you know that we’ve had several posts about Miami Beach cracking down on short-term rentals. In late September, the city implemented a strict new law designed to prevent widespread illegal rentals, partly resulting from previously reported issues and problems. CNBC is reporting that online platforms with listings in Miami Beach are now required to list specific business license information on their sites. The report says the new regulations were modeled after San Francisco’s and requires platforms to list the property owner’s city-issued tax receipt number and the resort tax registration certificate number for each listing. In addition, rentals for less than six months and one day are prohibited in the city unless the property is in a legally permissible zone. Short-term rentals are already largely illegal in the residential areas of the city. Did you get all that?
Yardi Says Long-Term Demand for Rentals to Remain High
BY BRAD BECKETT ON OCTOBER 21, 2018
According to the latest Yardi Matrix, U.S. multifamily rents dropped $1 in September to $1,412, however on a year-over-year basis rents were up 3%. Yardi says that the occupancy rate of stabilized properties has increased in recent months, which they say is a sign that demand remains solid in the face of a heavy development pipeline.
“Long-term demand for rentals is likely to remain high for a variety of demographic and social reasons. The renter-age population is growing, the economy is strong and there is demand from retirees downsizing from single-family houses.”
The Pros & Cons of Paying Off Your Mortgage or Investing in Real Estate
BY BRAD BECKETT ON OCTOBER 14, 2018
If you have extra cash, should you pay off your mortgage early or invest in real estate? The answer depends a lot on your current financial situation and goals. However, according to today’s infographic from FortuneBuilders, it’s a good idea to consider the benefits of both options because you just don’t know which decision will be the best for you in your particular situation…and, in the long run! Happy Sunday!!!
Best Airports in America
BY BRAD BECKETT ON OCTOBER 14, 2018
Everyone has their favorite airport and can tell you a story about the worst. Consumer insight giant J.D. Power recently surveyed over 40k weary travelers for their 2018 North America Airport Satisfaction Study in order to gauge satisfaction with mega, large, and medium North America airports. They looked at six important factors: terminal facilities, airport accessibility, security check, baggage claim, check-in/baggage check, and food, beverage and retail.
“North America airports have been doing a tremendous job managing passenger volume, adding amenities, and keeping travelers moving despite some noteworthy challenges, but they will be put to the true test over the next few years,” said Michael Taylor, Travel Practice Lead at J.D. Power.
Multifamily Units See Large Spike in 2017
BY BRAD BECKETT ON OCTOBER 14, 2018
According to new research from the NAHB’s Eye on Housing, construction of units in large multifamily buildings (50+ units) grew by 18% in 2017, representing the largest increase since 1972 when this data started being collected. In addition, they report that these units accounted for more than half of all multifamily completions. The data cited is from the U.S. Census Bureau’s latest Survey of Construction (SOC).
Click here to read the full report at the NAHB’s Eye on Housing.
Former Rock-n-Roller Masterminds Multimillion-Dollar Real Estate Scam
BY BRAD BECKETT ON OCTOBER 14, 2018
When celebrities, even minor washed-up ones, are involved in scams it reveals the power they have over others – especially in product endorsements and cheap publicity. According to a recent article on HousingWire the former bass player for the band The Ataris (known for their cover of Don Henley’s “The Boys of Summer”) spearheaded a massive real estate scam that defrauded more than 100k people across the country out of more than $25 million. According to the report, he pleaded guilty to a charge of conspiracy to commit mail & wire fraud. He also admmitted to owning and operating a California-based telemarketing business that supposedly offered prospective renters and homebuyers access to homes for sale or rent. All they needed get access to the homes was pay a $199 fee to his fraudulent company.
Big Single-Family Landlord to Spend $1 Billion on Home-Flipping
BY BRAD BECKETT ON OCTOBER 14, 2018
Bloomberg is reporting that Amherst Holdings, one of the largest single-family landlords in the U.S., plans to invest more than $1 billion next year in an effort to to purchase, renovate and resell properties to reportedly simplify the consumer experience of buying a home. Currently Amherst owns or manages around 20k single-family rentals. The new venture was called Bungalo Technologies, LLC and was launched last month in Texas and Florida.
“Amherst is starting the business as a shortage of homes for sale has driven up prices and created hot competition for available listings, prompting bidding wars and all-cash offers and forcing prospective buyers to shoot first and ask questions later…”
Millennials Moving to Urban Cores
BY BRAD BECKETT ON OCTOBER 14, 2018
Millennials are about to become the largest generation in history and with that their choices and buying patterns continue to influence the U.S. economy. A recent study by RentCafe recently took a look at where millennials are living and where the next potential hot spots are located. They ranked the zip codes of the 30 biggest U.S. cities buy the highest increases in millennial population over a 5-year period. They found (probably to no one’s surprise) that downtowns and areas near downtown are the clear favorites for millennials living in big cities.
“…this generation that values experiences more than material possessions prefers vibrant, walkable city neighborhoods where things are happening. Plus, with jobs increasingly relocating to urban cores and Generation Y making up most of the labor force, the residential areas in and near urban downtowns appear to be an increasingly popular choice…”
Mortgage Fraud is Getting Worse
BY BRAD BECKETT ON OCTOBER 14, 2018
According to new data from CoreLogic, mortgage fraud is on the rise as more people lie about their income in order to qualify for loans. CNBC’s Diana Olick reports that loan applications for real estate purchases are more likely to have fraud than for refinancing because higher interest rates have slowed refinancing activity, making mortgages a larger share. In addition, Fannie Mae says tips are on the rise from law enforcement, consumers, trade groups and lenders. Olick points out that the internet is making it easier and that a casual search reveals many online services that, for a fee, will not only generate fake pay stubs, but will also answer phone calls that “confirm” your purported income.
“The biggest jump in mortgage fraud risk was due to income reporting, up 22 percent annually. Since the epic housing crash a decade ago, lenders have had very strict limits on the amount of debt a borrower can have compared to his or her income. Some borrowers are therefore juicing their incomes in order to qualify. How? The internet is making it a lot easier.”
Amazon Enters the Home Building Business
BY BRAD BECKETT ON OCTOBER 14, 2018
Is ecommerce giant Amazon entering the home building space? A recent report on CNBC says they’ve recently taken a stake in Plant Prefab, a Southern California company that builds prefabricated custom single and multi-family homes that uses an automation in an attempt to keep costs low. The investment was made by their Alexa Fund and follows Amazon’s launch of over a dozen new smart home devices powered by their Alexa platform. By the way, these aren’t your normal run-of-the-mill prefab homes.
“Voice has emerged as a delightful technology in the home, and there are now more than 20,000 Alexa-compatible smart home devices from 3,500 different brands,” Paul Bernard, Alexa Fund’s director, said in a statement on Tuesday. “We’re thrilled to support [Plant Prefab] as they make sustainable, connected homes more accessible to customers and developers.”
